CoinFlex are now looking to provide physical delivery of BTC futures contracts at expiry.
The company said the reason for offering the service is to avoid price manipulation and the exchange closed USD 10 million worth of funding from several Blockchain investors according to the South China Morning Post.
It has been said CoinFlex wants to be the first exchange to offer physical delivery and is targeting Asian retail traders who want to avoid falling victim to price manipulation which is said to be more prevalent in cash settlement.
Mark Lamb who is the Cheif Executive of the Hong Kong-based firm said:
“Professional and retail traders alike are affected by price manipulation in the cash settled futures market. In physical delivered contracts, anyone long at expiry receives the underlying bitcoin. There are no formulas involved,”
Lamb said he had noticed an increase in attempts to manipulate prices over the past few months, by traders who managed to move the underlying spot prices that go into the formula in their favour, as they took advantage of the lighter trading volume of the cryptocurrency spot market compared with that of futures. Currently, the trading volume of bitcoin futures is 1.5 times that of spot a marked difference.
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